Rumours are circulating about a big for Best Buy (NYSE: BBY). It is about time! The company is absurdly cheap and the fears of a wholesale shift to Amazon (NASDAQ: AMZN) are overblown. I initially wrote about it here.
The Minnesota-based retail giant has become an alluring target for a private takeover, according to industry sources. The nation’s largest consumer electronics chain generates more than $1 billion in cash a year and has relatively little debt. …
A . . .
→ Read More: Best Buy: A Takeover Target? ($BBY)
There’s a great article on Results Only Work Environments (a concept pioneered at Best Buy (NYSE: BBY)) over at HBR blogs:
Most employers still tell their employees when to come to work, when to leave, and how they’re expected to work when they’re there. Why not measure employees by the value they create, rather than by the number of hours they sit at a desk?
Too many companies continue to operate by the premise that their employees can’t be fully trusted, . . .
→ Read More: HBR: Reward Value, Not Face Time
I wrote about Best Buy (NYSE: BBY) here, noting the company’s strong free cash flows and shareholder friendly track record. Today Bloomberg ran an article about how cheap BBY has become and the potential for an LBO:
For private equity buyers looking for a retailer that throws off the most cash, there’s no bigger bargain than Best Buy (BBY) Co.
After losing almost a third of its market value in 2011, the world’s largest seller of consumer electronics was valued . . .
→ Read More: Bloomberg: Best Buy’s Ridiculous Valuation Invites LBO ($BBY)
Anyone net long in the markets felt like this after yesterday’s close:
Image source: BrokersHandsOnTheirFacesBlog.tumblr.com (Brilliant!)
It is understandable. You (and I) took a wollaping. Good companies fell with bad. Nothing seemed to make sense. Fundamentals? Pssh. Fundamentals be damned. The market didn’t give a damn. Just sell. Sell and get me the hell out of everything. Put your head between your knees and prepare for . . .
→ Read More: Market Contraction? Value Investors Rejoice! ($BBY, $GME, $RSH)
Back the truck up Mavis. Electronics retailers are cheap.
Dirt cheap. Historically cheap. Do my eyes deceive me cheap. Wal-Mart rollback cheap. Groupon cheap (the deals, not the IPO). You get the picture.
I’ve written about how Best Buy (NYSE: BBY) is a shareholder-friendly value stock, and about how Radioshack (NYSE: RSH) represents a remarkable value opportunity. I’ve gone on at length about how these companies have long track records of earning exceptionally strong returns and free cash flows. I’ve . . .
→ Read More: hhgregg Inc: A Hhelluva Deal. Value Price with Growth Performance ($HGG, $BBY, $RSH, $GME)